Investors should be thrilled with another strong quarter by Honeywell. Another quarter of flat to declining sales and increased profits. The strong financial performance continues to come on the backs of employees (and former employees). I remember a time when the company could deliver strong results and have an engaged workforce. This is not sustainable.
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It's been earnings per share growth for a very long time now. Wall Street is well aware of the flat sales, but thinks that the "cost savings" efforts that fuel PS growth are due to everyone working more efficiently, etc. without harm to the company.
Why/when did "GROWTH" become earnings growth? Doesn't growth mean getting bigger? How can Honeywell be 'growing" and getting smaller -less people and buildings- at the same time? WS just keeps redefining the dictionary to suit them. Same thing with the jobs report - you have to be retarded to say I understand that. Constantly redefining what "out of work" means. Or inflation, how many times is it redefined. It all started back in the Clinton era when he asked that great question, "That depends on what the definition of "is" is" Nothing happened then, nothing happens now.
Finally figured it out! Honeywell leadership is breaking new ground by applying the Toyota parts management practices to employees. Keep reducing inventory (head count) until problems arise. Too bad they never adopted the whole system even in HOS.
A full year of guidance of 7-10% means one thing in a declining Aerospace Industry, more cuts to boost profit. This is very sad when there is not much meat left on the bone. Maybe 5S is the answer...
Town hall video kept going out. Seems the power of connected wasn't working so well.
Look at the press release, and you see that Honeywell took up the full year guidance by 7 to 10 percent and that is why the stock is up. Says Honeywell will have more profit than what they said before so where will it come from but off the backs of the hard working employees. So expect a hiring freeze and maybe those furloughs and RIFS will start again right!
How long will that last? A few months or years?
Eventually it will crash to the ground hard.
The market is very happy and that's really all the board want
They have not inspired employees. They lead by intimidation tactics. We are goign through STRAP right now and they do not like the numbers, so we are into Cut 1 and they want us to add to the numbers based on nothing. All crap from people who are not accountable for the numbers. If i was not accountable for the number, i would show the out years as huge too, just to get out of this cycle of lies, but the people who know they have to meet those numbers have no way of getting there, so they are VERY reluctant to put in any growth. The new SALES team is throwing BS in the mix to make thier projections look good to keep them employed, but realitty is the new sales guys do not know how to get around the internal Honeywell roadblocks and issues of poor deliveries and poor quality.
No customer wants to buy from a company as hard to work with as Honeywell.